Correlation Between Sunzen Biotech and ES Ceramics
Can any of the company-specific risk be diversified away by investing in both Sunzen Biotech and ES Ceramics at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Sunzen Biotech and ES Ceramics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sunzen Biotech Bhd and ES Ceramics Technology, you can compare the effects of market volatilities on Sunzen Biotech and ES Ceramics and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Sunzen Biotech with a short position of ES Ceramics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunzen Biotech and ES Ceramics.
Diversification Opportunities for Sunzen Biotech and ES Ceramics
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sunzen and 0100 is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Sunzen Biotech Bhd and ES Ceramics Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ES Ceramics Technology and Sunzen Biotech is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Sunzen Biotech Bhd are associated (or correlated) with ES Ceramics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ES Ceramics Technology has no effect on the direction of Sunzen Biotech i.e., Sunzen Biotech and ES Ceramics go up and down completely randomly.
Pair Corralation between Sunzen Biotech and ES Ceramics
If you would invest 32.00 in Sunzen Biotech Bhd on August 28, 2024 and sell it today you would earn a total of 0.00 from holding Sunzen Biotech Bhd or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sunzen Biotech Bhd vs. ES Ceramics Technology
Performance |
| Timeline |
| Sunzen Biotech Bhd |
| ES Ceramics Technology |
Sunzen Biotech and ES Ceramics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunzen Biotech and ES Ceramics
The main advantage of trading using opposite Sunzen Biotech and ES Ceramics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunzen Biotech position performs unexpectedly, ES Ceramics can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in ES Ceramics will offset losses from the drop in ES Ceramics' long position.| Sunzen Biotech vs. Apollo Food Holdings | Sunzen Biotech vs. YX Precious Metals | Sunzen Biotech vs. Melewar Industrial Group | Sunzen Biotech vs. YTL Hospitality REIT |
| ES Ceramics vs. Digistar Bhd | ES Ceramics vs. Minetech Resources Bhd | ES Ceramics vs. OpenSys M Bhd | ES Ceramics vs. Insas Bhd |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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